Just as speaking the local language helps you get around when you travel to a new destination, learning the language of the world of investing will help you navigate its terrain more easily and effectively. This section will introduce you to basic concepts you can use as you consider your investment strategy.

It can work for you or against you. Considering your time horizon will help you maximize your investment results and protect you from the impact of inflation.

Before you set out on your journey, you will want to know if your vehicle is a jet, a bus or a rowboat. This section describes different investment vehicles, or asset classes, and their characteristics.

Understanding risk and return can be your passport to success in investing. You will learn how they work, and how they relate to each other.

Once you know the basics, you are ready to make some decisions. Techniques such as asset allocation and diversification are ways to manage your investments.

Whether you are new to the world of investing or have some investment experience, be sure to read this section before making your investment decisions. For more investment language, refer to the Glossary at the end of this Guide.